Alliance and Leicester finds Barclays accounts 'complicated'

Thursday, November 3, 2005

Alliance and Leicester has said that the zero per cent overdraft offered by Barclays has "many catches" and has warned people to always read small print.

The bank has said that the overdrafts offered by Barclays are not as flexible as they first appear and has claimed that potential customers will have to deal with certain restrictions if accepted.

"Barclays offer two zero per cent overdraft options for new customers only – and taken at face value, the offers seem enticing," said Simon Ripton, current account manager at Alliance and Leicester.

"In reality, however, the propositions are complicated and there are a lot of restrictions."

He added: "There are many catches buried in Barclays' terms and conditions that mean few customers will actually be able to benefit from this offer."

Alliance and Leicester says that the restrictions include the need to deposit £1,000 a month for twelve months, and that anyone who goes over their agreed overdraft limit has to pay the regulation 27.5 per cent interest.

The Barclays website bills one of its zero per cent interest overdraft accounts, the Barclays Bank Account, as the answer for those people who "just want to keep things simple".
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